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Exelon, Pepco to appeal D.C. commission’s recent merger rejection

Exelon Corp. and Pepco Holdings are holding fast to their proposed $6.4 billion merger and plan soon to file an appeal of the Washington, D.C., Public Service Commission’s (PSC) Aug. 25 rejection of their initial proposal.

“We remain convinced our merger proposal is in the public interest and we will continue working to complete the merger,” Paul Elsberg, spokesman for the Chicago-based Exelon, told Power News Wire.

The three-member regulatory commission said in an earlier statement that the proposed merger would not align with what the PSC considers to be the goal of public policy, which is to be focused on providing reliable, safe and affordable distribution services to local district businesses and residents.

In response, Exelon and Pepco said in a joint statement that the PSC’s decision “fails to recognize the substantial immediate and long-term benefits” of their proposed merger, which already has received approval from the U.S. Department of Justice, the Federal Energy Regulatory Commission, and regulators in Delaware, Maryland and New Jersey.

“We plan to file a petition for reconsideration before the PSC within the 30-day period” that started Aug. 27, Elsberg told Power News Wire.

Specifically, that means the utilities have until about Sept. 25 to file their appeal. Once the PSC receives the filing for reconsideration, it has 30 days to deny, grant or do nothing about the request. If the commission does nothing, that’s basically a denial, according to the commission.

If the proposed merger plans are rejected again by the PSC, Elsberg did not say what further action would be taken by the utilities. However, he said that “following the commission's decision on reconsideration, parties have the option of further filing appeals with the D.C. Court of Appeals.”

The companies also have the option to file a new application with the PSC.

As to whether Exelon is considering other mergers at this time, Elsberg told Power News Wire, “We continually evaluate all opportunities to add value for our shareholders, but we don’t comment on speculation about potential mergers and acquisitions.”